module fsm ( clock, reset, req_0, req_1, gnt_0, gnt_1 );
    input   clock,reset,req_0,req_1;
    output  gnt_0,gnt_1;
    wire    clock,reset,req_0,req_1;
    reg     gnt_0,gnt_1;

    parameter SIZE = 3;
    parameter IDLE = 3'b001;
    parameter GNT0 = 3'b010;
    parameter GNT1 = 3'b100;
    parameter GNT2 = 3'b101;

    reg [SIZE-1:0] state;
    reg [SIZE-1:0] next_state;

    always @ (posedge clock)
        begin : FSM
          if (reset == 1'b1) begin
            state <=  #1  IDLE;
            gnt_0 <= 0;
            gnt_1 <= 0;
          end 
          else
            case(state)
              IDLE :  if (req_0 == 1'b1) begin
                          state <=  #1  GNT0;
                          gnt_0 <= 1;
                      end else if (req_1 == 1'b1) begin
                          gnt_1 <= 1;
                          state <=  #1  GNT0;
                      end else begin
                          state <=  #1  IDLE;
                      end
              GNT0 :  if (req_0 == 1'b1) begin
                          state <=  #1  GNT0;
                      end else begin
                          gnt_0 <= 0;
                          state <=  #1  IDLE;
                      end
              GNT1 :  if (req_1 == 1'b1) begin
                          state <=  #1  GNT2;
                          gnt_1 <= req_0;
                      end
              GNT2 :  if (req_0 == 1'b1) begin
                          state <=  #1  GNT1;
                          gnt_1 <= req_1;
                      end
              default : state <=  #1  IDLE;
            endcase
        end
endmodule