Different types of uncertainties need to be addressed in a product design optimization process. In this paper, the uncertainties in both product design variables and environmental noise variables are considered. The reliability-based design optimization (RBDO) is integrated with robust product design (RPD) to concurrently reduce the production cost and the long-term operation cost, including quality loss, in the process of product design. This problem leads to a multi-objective optimization with probabilistic constraints. In addition, the model uncertainties associated with a surrogate model that is derived from numerical computation methods, such as finite element analysis, is addressed. A hierarchical experimental design approach, augmented by a sequential sampling strategy, is proposed to construct the response surface of product performance function for finding optimal design solutions. The proposed method is demonstrated through an engineering example.