You shouldn't need to quarantine healthy puppies, but breeding Odie is not a good idea. Demodectic mange appears in dogs with a poor immune system and the compromised immune system can be inherited. All dogs carry demodex mites, but the immune system of healthy dogs keeps the mite population small so the dog doesn't "break out". When a dog's immune system can't fight off the mites they reproduce like crazy resulting in the mange.
You might ask your vet, or find a holistic veterinarian who can talk to you about ways to boost Odie's immune system with diet and nutritional supplements. Or consider going back to your breeder. Did they give you any type of health warranty? With a compromised immune system, Odie is unfortunately likely to have quite a few future health issues.
Edit: I just noticed you wrote that you would "quantee" future puppies. Did you mean quarantine, or guarantee?