  This is the second of two articles devoted to an exposition of the
generating-function method for computing fusion rules in affine Lie algebras.
The present paper focuses on fusion rules, using the machinery developed for
tensor products in the companion article. Although the Kac-Walton algorithm
provides a method for constructing a fusion generating function from the
corresponding tensor-product generating function, we describe a more powerful
approach which starts by first defining the set of fusion elementary couplings
from a natural extension of the set of tensor-product elementary couplings. A
set of inequalities involving the level are derived from this set using Farkas'
lemma. These inequalities, taken in conjunction with the inequalities defining
the tensor products, define what we call the fusion basis. Given this basis,
the machinery of our previous paper may be applied to construct the fusion
generating function. New generating functions for sp(4) and su(4), together
with a closed form expression for their threshold levels are presented.
