I have an eight month old GSD that has already begun to experience hip problems. What would be the best course of action to do what is right for the dog?

Unless you have had the dog x-rayed you cannot assume that this dog has hips problems. It could be pano.

If the dog is x-rayed and diagnosed with bad hips what happens next depends on the severity of the hip or hips. Many dogs can live a normal life with moderately bad hips. They just should not be bred.

If the hips are bad, keep the dog THIN, swim the dog a lot, do not run or jog the dog.