The substitution rule is to be understood as a combination of inflating (scaling) and replacement of patches.
r ->
R ->
RrR ->
(RrR)(R)(RrR) = RrRRRrR ->
(RrR)(R)(RrR)(RrR)(RrR)(R)(RrR) = RrRRRrRRrRRrRRRrR ->
etc.
Moreover you should be aware that this substitution only produces a 1D chain, while the Ammann-Beenker tiling clearly is 2D.
But clearly there is a 2D substitution too, which produces the required tiling directly. Again you have patches which are to be scaled first and then substituted by the original patches again. This then is described by the following Wikipedia picture: ![enter image description here](
\--- rk