We have already presented the constraint satisfaction algorithm which could solve the losed loop problem in constraint network by using local constraint propagation, variable elimination and constraint modularization. With this algorithm, we have implemented a knowledge-based system (intelligent CAD) for supporting machine design interactively. In this paper, we present newer constraint satisfaction algorithm which can solve inequalities or under-constrained problems in constraint network, interactively and efficiently. This algorithm is a hybrid type of using both declarative description (constraint represention) and optimization algorithm (Simulated Annealing), simultaneously. The under-constrained problems are represented by constraint networks and satisfied completely with this algorithm. The usefulness of our algorithm will be illustrated by the application to a gear design.