In the current era, the role of smart devices is expanding every day. These devices depend on both software and hardware functions to produce the desired results. The success of such devices depends on a new design paradigm that considers reliability in virtually every aspect of the devices' software and hardware content. Design of a hardware system involves selection from numerous discrete choices among available component types based on cost, reliability, performance, weight, etc. Design of software systems involves the selection of the best choice from a stack of available choices with variable reliabilities and costs. We try to design an embedded system which optimizes the reliability in the perspective of cost or vice versa. An Integer Programming approach for simplified assumptions and an Evolutionary approach for the non-simplified case is proposed.