the error says it all. Someone still has the file opened.
before you delete you have to check if you can open the file exclusivly.
your code could be:
try
{
using (stream = File.Open(Server.MapPath("reports") + "\\" + ASPxDropDownEdit1.SelectedItem.Text + "-ConsumableReport.pdf", FileMode.Open, FileAccess.Write, FileShare.None))
{
if (stream.CanWrite)
File.Delete(Server.MapPath("reports") + "\\" + ASPxDropDownEdit1.SelectedItem.Text + "-ConsumableReport.pdf");
}
}
catch (Exception err)
{
}